Assume the following for Round Top Inc. for the current fiscal year. Round Top applies overhead on the basis of units produced. Budgeted overhead $ 375,000 Actual overhead $ 385,000 Actual labor hours 27,000 Actual number of units sold 660,000 Overapplied overhead $ 40,000 Budgeted production (units) 750,000 How many units were produced in the current fiscal year?
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Assume the following for Round Top Inc. for the current fiscal year. Round Top applies
| Budgeted overhead | $ | 375,000 |
| Actual overhead | $ | 385,000 |
| Actual labor hours | 27,000 | |
| Actual number of units sold | 660,000 | |
| Overapplied overhead | $ | 40,000 |
| Budgeted production (units) | 750,000 | |
How many units were produced in the current fiscal year?
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
